Advance Auto Parts Inc (AAP)
Fixed asset turnover
| Dec 31, 2023 | Oct 7, 2023 | Jul 15, 2023 | Apr 22, 2023 | Dec 31, 2022 | Oct 8, 2022 | Apr 23, 2022 | Dec 31, 2021 | Oct 9, 2021 | Jul 17, 2021 | Apr 24, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jul 11, 2020 | Apr 18, 2020 | Dec 31, 2019 | Oct 5, 2019 | Jul 13, 2019 | Apr 20, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 11,284,210 | 11,292,080 | 11,214,340 | 11,895,070 | 10,872,760 | 11,024,650 | 11,032,730 | 10,996,300 | 10,959,250 | 10,879,950 | 10,731,910 | 10,099,420 | 9,853,800 | 9,623,980 | 9,454,850 | 9,709,010 | 9,701,470 | 9,664,340 | 9,658,740 | 9,580,550 |
| Property, plant and equipment | US$ in thousands | 1,648,550 | 1,663,080 | 1,688,890 | 1,694,340 | 1,690,140 | 1,663,940 | 1,567,990 | 1,528,310 | 1,483,250 | 1,472,470 | 1,463,990 | 1,462,600 | 1,444,890 | 1,436,480 | 1,444,480 | 1,433,210 | 1,389,090 | 1,381,390 | 1,363,130 | 1,368,980 |
| Fixed asset turnover | 6.84 | 6.79 | 6.64 | 7.02 | 6.43 | 6.63 | 7.04 | 7.20 | 7.39 | 7.39 | 7.33 | 6.91 | 6.82 | 6.70 | 6.55 | 6.77 | 6.98 | 7.00 | 7.09 | 7.00 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $11,284,210K ÷ $1,648,550K
= 6.84
Advance Auto Parts Inc's fixed asset turnover ratio has shown some fluctuation over the past few years, ranging from a low of 6.43 in December 2022 to a high of 7.39 in October 2021 and July 2021. Overall, the trend seems relatively stable, with the ratio generally hovering between 6.50 and 7.50.
A higher fixed asset turnover ratio indicates that the company is generating more sales revenue for each dollar invested in fixed assets. In this case, Advance Auto Parts Inc has consistently maintained a healthy ratio above 6.00, suggesting efficient utilization of its fixed assets to generate revenue. This efficiency can be attributed to effective management of its fixed assets, operational excellence, and potentially strong sales performance.
Furthermore, the relatively consistent performance of the fixed asset turnover ratio over the years indicates that Advance Auto Parts Inc has been able to maintain a balanced and efficient asset base, which is crucial for sustainable growth and profitability in the long run.
Overall, the fixed asset turnover ratio analysis suggests that Advance Auto Parts Inc has been effectively utilizing its fixed assets to drive sales revenue, reflecting favorable operational efficiency and management practices in the company's operations.
Peer comparison
Dec 31, 2023